It's a central nervous system for so many companies." "We see in Slack a once-in-a-generation company and platform.
"It's a match made in heaven," Benioff said during an ebullient conference call. "It's just clear Microsoft is moving further and further away from Salesforce when it comes to the cloud wars."īenioff left no doubt he considered the deal to be a major coup, after losing out to Microsoft in 2016 when the two companies were both vying to buy the professional networking service LinkedIn. "For Benioff, this is all about Microsoft," Wedbush Securities analyst Dan Ives said of Tuesday's deal.
Microsoft also has been posing a threat to Salesforce's main products, a line-up of tools that help other companies manage their customer relationships. Slack in July filed a complaint in the European Union accusing Microsoft of illegally bundling Teams into Office 365 in a way that blocks its removal by customers who may prefer Slack. Microsoft for one has developed its own thriving online suite of services, known as Office 365, which includes a Teams chatting service that includes many of the same features as Slack's 6-year-old application. Salesforce's flamboyant founder and CEO Marc Benioff hailed the "cloud computing" concept as the wave of the future to much derision initially.īut software as a service has become an industry standard that has turned into a gold mine for longtime software makers. The San Francisco company was one of the first to begin selling software as a subscription service that could be used on any internet-connected device instead of the more cumbersome process of installing the programs on individual computers. The acquisition announced Tuesday is by far the largest in the 21-year history of Salesforce. Business software pioneer is buying work-chatting service Slack for US$27.7 billion (CAD$35.8 billion) in a deal aimed at giving the two companies a better shot at competing against longtime industry powerhouse Microsoft.
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